Reported by the Wall Street Journal over the weekend, Kindred has confirmed a takeover offer from FDJ. The offer, which was announced on January 21, involves FDJ offering SEK130 in cash for each Swedish Depository Receipt (SDR) in Kindred. This represents a 24.4% increase compared to the closing price of Kindred shares on January 19. The proposed acquisition has been recommended unanimously by Kindred and has received support from five major shareholders. The acceptance period for the offer is set to begin on February 20 and expire on November 19, subject to various conditions.
FDJ has described the acquisition as a means to create the second largest gaming operator in Europe. The deal is expected to result in stronger revenue and earnings growth, as well as value creation for FDJ shareholders in the form of an increased dividend. Kindred CEO, Nils Andén, is enthusiastic about the potential of the merger, stating that it will support the growth of both companies and accelerate Kindred’s path towards fully regulated revenue.
This acquisition offer comes after Kindred expressed a potential sale in mid-2022 and subsequently launched a strategic review to explore various options. The review is still ongoing despite FDJ’s proposal. Kindred has also announced plans to exit the North American market by Q2 2024 in order to focus on key markets. FDJ, on the other hand, has been expanding its operations and digitizing its core businesses, including the recent acquisition of the Irish National Lottery and horse race betting operator ZeTurf.
